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<strong>Spice</strong> <strong>Mobility</strong> Limited (formerly <strong>Spice</strong> Mobiles Limited)<br />
Schedule 24<br />
Notes to Accounts<br />
5. Merger<br />
The Board of Directors of the Company approved amalgamation of <strong>Spice</strong> Televenture Private Limited, its holding company, with<br />
the Company in the meeting held on January 30, 2010. Pursuant to this approval, the Company has on 15th April 2010, fi led<br />
with Honourable High Court at Allahabad (U.P.), a scheme of amalgamation entailing merger of the holding company with the<br />
Company. As per the said scheme, with effect from the Appointed Date i.e. January 01, 2010, the undertaking of the holding<br />
company, pursuant to the provisions contained in Sections 391 to 394 and other applicable provisions of the Companies Act<br />
1956, shall stand transferred to and vested in the Company on a going concern basis without any further act, deed or matter.<br />
However, the amalgamation shall be effective from the date of fi ling of the certifi ed copy of the Order of the Honourable High<br />
Court with Registrar of Companies of Uttar Pradesh and Uttranchal. Pending the approval of the said High Court, the effect of the<br />
amalgamation has not been given.<br />
6. Leases<br />
a) Assets taken under Operating Leases<br />
Offi ce premises and offi ce equipments are obtained on operating lease. There are no contingent rents in the lease agreements.<br />
The lease terms are for 1–3 years and renewable by mutual agreement of both the parties. There is no escalation clause in<br />
the lease agreements. There are no restrictions imposed by lease arrangements. There are no subleases and all the leases<br />
are cancellable in nature.<br />
b) Assets given on Operating Leases<br />
The Company has given some portion of factory building at Baddi in the state of Himachal Pradesh on operating lease. The<br />
initial lease terms are for 3 years and renewable at the option of the lessee for a maximum renewal period of 6 years. There<br />
are no restrictions imposed by lease agreement and there are no contingent rents.<br />
(Amt in Rs. ‘000)<br />
Particulars Year ended<br />
Period ended<br />
Future minimum lease payments<br />
March 31, 2010<br />
March 31, 2009<br />
Not later than one year 330 330<br />
Later than one year but not later than fi ve years 757 1,087<br />
Later than fi ve years Nil Nil<br />
Total<br />
7. a) Derivative Instruments and Un hedged Foreign Currency Exposure<br />
1,087 1,417<br />
Particulars of Derivatives Purpose<br />
Forward contract outstanding as at Balance Sheet date<br />
Sell<br />
US $ 33,588,537 (previous period US$ 13,100,000) Hedge of Import Creditors<br />
The amounts of foreign currency exposure that are not hedged by a derivative instrument or others as on March 31, 2010 are<br />
as under:<br />
Particulars Amt<br />
(Rs. ‘000)<br />
March 31, 2010 March 31, 2009<br />
Foreign<br />
currency<br />
Import creditors 559,815 USD<br />
12,468,040<br />
Advance to<br />
suppliers and other<br />
receivable*<br />
605,275 USD<br />
13,480,513<br />
Exchange<br />
Rate<br />
Amt<br />
(Rs. ‘000)<br />
Foreign<br />
currency<br />
Exchange<br />
Rate<br />
44.90 34,899 USD 688,074 50.72<br />
44.90 142,475 USD 2,809,041 50.72<br />
Debtors 17,315 USD 385,635 44.90 3,983 USD 78,537 50.72<br />
* Rs 586,640 thousand at the year end (previous period Rs 133,510 thousand) have been adjusted from balances of the<br />
creditors in the fi nancial statements.<br />
45
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